UK national security alert as TalkTalk threatened with administration

UK national security alert as TalkTalk threatened with administration Group is still progressing talks with rival Opus Broadband over a possible deal thought to be worth £100 million - Bookmark - CommentsGo to comments Become an Independent member to bookmark this article Already a member? Log in TalkTalk has said it remains in “advanced discussions” with potential buyers of its consumer and broadband businesses as the troubled telecoms firm races to secure its future. Britain’s fourth-largest broadband provider said it was in the final stages of agreeing sales for its two divisions as speculation swirls that it could be heading for administration if it cannot reach agreement on deals. It said: “The company is now in the final stages of its sales process for the business and expects to conclude both transactions imminently.” The government has been in contact with TalkTalk over the sales, given its role as a major broadband provider to households and businesses, as well as telecoms services to the Ministry of Defence. It is believed that national security networks are partly dependent on TalkTalk systems. It is understood the group is still progressing talks with rival Opus Broadband over a possible deal for the consumer arm TalkTalk thought to be worth £100 million, as well as discussions with Octopus Investments for its wholesale business PXC reportedly at around the £300 million mark. But a period of exclusivity with both bidders ended in recent days, leading to worries that sales could fall apart and see the company collapse into administration. Ofcom, the industry regulator, was reported by the Telegraph last weekend to be closely monitoring the unfolding situation at TalkTalk, with BT being asked to step in to take on TalkTalk's retail customers if the company were to collapse. TalkTalk was founded by Sir Charles Dunstone in 2003 as a subsidiary to Carphone Warehouse. Its shareholders, including chairman Sir Charles and lender Ares Management, are thought to also be involved in discussions and could pump in more cash should deals with Opus and Octopus fall apart. The sales are complicated by the fact the consumer business is dependent on infrastructure controlled by PXC. A deal to sell PXC was therefore needed to secure the sale of the TalkTalk consumer business. Sir Charles, who is still a major shareholder in TalkTalk, backed a £1.1 billion deal to take TalkTalk private in December 2020, led by its then second largest investor, hedge fund Toscafund, and private equity firm Penta Capital. This saw it delist in 2021, ending an 11-year tenure on the London market, but also left it saddled with debt. The firm has also struggled amid an increasingly competitive market in recent years, with so-called altnet challengers entering the fray and under-cutting many of the established providers. Join our commenting forum Join thought-provoking conversations, follow other Independent readers and see their replies Comments